Updated September 2025
Here’s the thing nobody tells you when you’re staring at your mortgage statement, wondering, ‘Can You Sell a House With a Mortgage? Yes you can absolutely sell your house even if you still owe money on your existing mortgage.
Most people selling their home in Ireland do exactly this. Your mortgage lender gets paid from your sale proceeds, you get whatever’s left over, and life moves on. But there’s a process to follow, and honestly, getting it wrong can cost you time and money when you’re ready to move home.
Can You Sell a House With a Mortgage? The Reality Check You Need First
Before we dive into the steps, let’s talk numbers for a minute.
If your property’s value is €400,000 and you owe €350,000 on your current mortgage, you’re golden. But if you owe €380,000 on a residential property worth €350,000? That’s negative equity, and the process of selling becomes much more complicated (though still possible with your lender’s cooperation).
Check this first because it shapes everything else – especially if you’re planning to buy another property or considering porting your mortgage to another property.
Step 1: Review Your Existing Mortgage Contract With Your Solicitor
Check for a due-on-sale clause and any early-repayment or exit fees. These terms outline how and when the loan must be repaid. If anything is unclear, ask your solicitor to review the contract.
The due-on-sale clause – This basically says “pay us back when you sell.” It’s in virtually every Irish mortgage, so don’t panic when you find it.
Early repayment fees – These can sting, especially if you’re on a fixed term. Some lenders charge 6 months’ interest. Others have sliding scales based on your mortgage term. Your loan offer document should spell this out clearly.
If the legal language makes your eyes glaze over, that’s what solicitors are for. Pay them to translate it into plain English. This is especially important if you’re considering porting a mortgage to a new property rather than paying off your mortgage completely.
Step 2: Understanding Mortgage Cost – Get Your Exact Payoff Amount
Ring your lender and ask for a redemption statement. Don’t just ask for your outstanding mortgage balance – that’s not the same thing.
The redemption statement shows:
- Exactly what you owe right now
- Daily interest charges until you pay off the loan
- How long this quote stays valid (usually 30 days)
- Any fees for paying off any loan early
Pro tip: Interest accumulates daily, so if your closing gets delayed, you’ll owe more than expected. Build in a small buffer when calculating funds raised from the sale.
Step 3: Property Sales Valuation – Speed Up Your Property Sale
Get a proper property valuation, not just a Daft.ie estimate. Estate agents will usually do this for free if you’re serious about listing with them, and a professional survey of the property ensures accurate pricing for property sales.
When you meet them, be upfront about your mortgage situation. Good agents deal with this constantly and can advise whether your asking price will cover your debts plus selling costs. They can also help speed up your property sale with the right marketing strategy.
If the numbers are tight, they might suggest waiting for better market conditions or making improvements first. Some may also recommend getting a building energy rating assessment if yours is outdated, as this affects buyer interest.
Step 4: Sort Out the Legal Stuff Early
Your solicitor needs to get your title deeds from the lender. This sounds simple but can take weeks, especially if your lender’s admin team is having a slow month.
Start this process before you even list the property. Seriously. I’ve seen sales fall through because this step was left too late.
Step 5: Selling Your Home – Make Your House Irresistible
Since you need every euro you can get, presentation matters more when you have a mortgage to clear.
Outside: Your house competes with every other property online. Clean the driveway, trim the hedges, maybe throw some flowers in pots by the front door. First impressions sell houses.
Inside: Pack away the family photos and kids’ artwork. Buyers need to picture themselves living there, not admire your family memories. A bit harsh, maybe, but it works.
Step 6: Fixed Rate vs Variable – Understanding Your Mortgage Type
Variable rate mortgage? You can usually pay it off anytime without penalties. Some lenders ask for a few days’ notice, but that’s it. This gives you flexibility whether you’re buying and selling simultaneously or just selling the property.
Fixed rate mortgage? You can still pay early, but expect a break fee. This could be substantial – sometimes thousands of euros – so factor it into your calculations. Your loan offer documents from when you first got the mortgage will have the exact formula for calculating these fees.
If you’re planning to buy a property elsewhere, you might be able to port your mortgage instead of paying it off completely. This means transferring your existing mortgage in Ireland to your new home, potentially avoiding early repayment penalties.
Step 7: The Buying Process – Closing Day Completion
On completion day of the sale of your property, your solicitor becomes a financial traffic controller:
- They receive the purchase price from the buyer’s solicitor
- Pay your lender exactly what you owe (to the day) – ensuring the loan is paid in full
- Pay their own fees, local property tax if outstanding, and any other bills
- Transfer whatever’s left to your account
You’ll get a statement showing where every euro went. Keep this for your records, especially if you’re applying for a mortgage on another property.
Move Home in 2025: What Nobody Mentions About Selling
Timing matters: If you’re trading up, consider whether to sell first or buy first. Each approach has cash flow implications, especially when you need mortgage approval for a new property. The buying process can be complex when coordinating both transactions.
Get a Mortgage for Your New Property – Working With Lenders in Ireland
If you’re getting a mortgage for your next home, lenders in Ireland will want to see bank statements showing the sale proceeds. Your mortgage broker can advise on timing this properly. Some buyers benefit from schemes like Help to Buy or the First Home Scheme if they qualify.
Mortgage Market Considerations for 2025
The mortgage market changes regularly. According to the latest mortgage switching index, many homeowners benefit from reviewing their options. Buy to let considerations: If you’re moving from an owner-occupied property to buy to let, or vice versa, different mortgage rules apply. The type of mortgage and mortgage cost structure changes significantly.
Tax considerations: If this isn’t your main home in Ireland, you might face Capital Gains Tax. Talk to an accountant if you’re unsure, especially for buy to let properties.
Moving costs: Don’t forget removals, deposits, and the million small costs that come with moving house. They add up faster than you’d think. If you need planning permission for renovations at your new property, factor in those delays too.
Porting a Mortgage vs Applying for a Mortgage – Understanding Your Options
If you’re also obtaining a mortgage for another property, this delay might affect your mortgage application timeline. Working with a mortgage broker can help you understand whether porting a mortgage makes more sense than applying for a mortgage from scratch.
Sale falls through: Your redemption statement expires, so you’ll need a new one. No big deal, just annoying.
Price needs to drop: If you have to accept less than expected, make sure you can still cover your mortgage in place. If not, you might need your lender’s agreement to proceed. This is where having financial advice from a qualified professional helps.
Delays: Irish property transactions are famous for delays, especially when there’s legal work involved in buying your next home. The Society of Chartered Surveyors Ireland recommends building buffer time into your moving plans. If you’re switching to a new mortgage deal, delays can affect your rate lock.
Sell Your House With Mortgage in Ireland – Bottom Line
Selling your property with a mortgage in place isn’t complicated, but it requires planning. Start the legal work early, understand your true mortgage cost including any penalties, and price realistically based on current market conditions.
Whether you’re moving to another property, considering a buy to let investment, or simply ready to pay when you buy your next home, the mortgage journey doesn’t have to be stressful. The Central Bank of Ireland and various mortgage lending institutions are used to these transactions.
Most importantly, don’t let mortgage anxiety keep you trapped in a house you want to leave. With proper preparation, selling property in Ireland is completely manageable, whether you’re a first-time seller or moving up the property ladder.
If you’re interested in porting your mortgage or need help understanding if you’re able to port your mortgage to a new property, read our guide on mortgage switching. The mortgage market in Ireland offers various options, and according to the latest mortgage switching index, many homeowners benefit from reviewing their options regularly.
Thinking about selling your property? Start with an honest conversation with your solicitor about your specific situation. They’ll tell you exactly what to expect and help you avoid expensive surprises. If you’re also looking to get a mortgage for your next home, consider speaking with a mortgage broker who can help you find the best mortgage rate and ensure that the property you’re buying meets all requirements. Remember, whether you’re looking at second and subsequent buyers schemes or standard variable rates, professional guidance makes your mortgage journey smoother.
